On Feb. 11th, Richard Kinder, Board Director at El Paso Pipeline Partners, L.P. (NYSE:EPB), acquired 100,000 Common Shares of the company. The insider paid an average price of $30.04 per share, in a transaction that surpassed a total of $3 million.
El Paso Pipeline Partners, L.P. (NYSE:EPB) is a $7 billion market cap, Delaware-based company that owns and operates natural gas transportation pipelines and storage assets. Despite its industry leading margins, returns and dividend yield (8.6%), and a valuation at less than half its industry’s average, most analysts recommend holding on this stock for now. Why? Mainly because the company’s growth prospects for the years to come look quite limited. In fact, the market seems to have already picked up on this: after a relatively stable 2013, the stock plummeted. Over the past 90 days, the stock price fell more than 25%.
Mr. Kinder seems to have seen this price drop as an attractive entry point (at 15 times the firm’s earnings), and thus decided to add these 100,000 shares to his equity portfolio. The Board Director now owns 128,000 shares of El Paso Pipeline Partners, L.P. (NYSE:EPB).
Moreover, it is not only Mr. Kinder that seems to be fond of El Paso Pipeline Partners, L.P. (NYSE:EPB). Several of the top hedge fund bulls declared on their 13F filings that they had increased their stakes in the company. For instance, Jim Simons‘ Renaissance Technologies increased its holdings by 21% during the third quarter, and now owns 283,200 shares of the company.
On the other hand, Ken Griffin’s Citadel Investment Group reduced its stakes considerably over the past few months. So, with insiders and some funds betting on El Paso Pipeline Partners, L.P. (NYSE:EPB), and other funds and analysts feeling more bearish, is it time to invest in this stock? Or is it time to wait, while looking for better options in the industry?
Disclosure: Javier Hasse holds no position in any stocks mentioned